Commitments and Contingencies

12 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

20. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

Sysco is engaged in various legal proceedings which have arisen but have not been fully adjudicated.The likelihood of loss for these legal proceedings, based on definitions within contingency accounting literature, ranges from remote to reasonably possible and to probable.Based on estimates of the range of potential losses associated with these matters, management does not believe the ultimate resolution of these proceedings, either individually or in the aggregate, will have a material adverse effect upon the consolidated financial position or results of operations of the company.However, the final results of legal proceedings cannot be predicted with certainty and if the company failed to prevail in one or more of these legal matters, and the associated realized losses were to exceed the company’s current estimates of the range of potential losses, the company’s consolidated financial position or results of operations could be materially adversely affected in future periods.

Fuel Commitments

Sysco routinely enters into forward purchase commitments for a portion of its projected diesel fuel requirements.As of June 30, 2012, we had forward diesel fuel commitments totaling approximately $95.6 million through April 2013.

Other Commitments

Sysco has committed to product purchases for resale in order to benefit from the company’s purchasing power.A majority of these agreements expire within one year; however, certain agreements have terms through fiscal 2017.These agreements commit the company to a minimum volume at various pricing terms, including fixed pricing, variable pricing or a combination thereof.Minimum amounts committed to as of June 30, 2012 totaled approximately $1,045.4 million.Minimum amounts committed to by year are as follows:

	Amount
	(In thousands)
2013	$	855,444
2014		187,062
2015		1,323
2016		1,000
2017		591

Sysco has committed with a third party service provider to provide hardware and hardware hosting services. The services are to be provided over a ten-year period beginning in fiscal 2005 and ending in fiscal 2015. The total cost of the services over that period is expected to be approximately $586.9 million. This amount may be reduced by Sysco utilizing less than estimated resources and can be increased by Sysco utilizing more than estimated resources and the adjustments for inflation provided for in the agreements. Sysco may also cancel a portion or all of the services provided subject to termination fees which decrease over time. If Sysco were to terminate all of the services in fiscal 2013, the estimated termination fee incurred in fiscal 2013 would be approximately $14.1 million.